Chapter 19 - Financial Statements

The income statement consists of Operating Activities, Financing Activities, and Investment activities.

• True

• False

Answer explanation

These categories are shown on the Statement of Cash Flows

Which of the following are classified as equity? Choose 2

• Mortgages

• Capital Stock

• Retained earnings

• Short-term notes

An amount earned by a corporation and not yet distributed to stockholders.

• retained earnings

• dividends

• purchases allowance

• sales return

The value of the stockholders' claims to the assets of a corporation is known as

• stockholder's equity

• stakeholder's equity

• retained earnings

• liabilities

The percent of property, plant and equipment to total assets is an example of:

• vertical analysis

• solvency analysis

• profitability analysis

• horizontal analysis

The analysis of increases and decreases in individual items in comparative financial statements is called:

• vertical analysis

• solvency analysis

• profitability analysis

• horizontal analysis

These are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings.

• Statement of Financial Position

• Financial Statements

• Balance Sheet

• Cash flows

each amount on a financial statement is compared with its corresponding amount on the previous statement

• horizontal analysis

• vertical analysis

each dollar amount on a financial statement is also stated as a percentage of a base amount on the same statement

• horizontal analysis

• vertical analysis

The ownership of a corporation is represented by shares of stock

• True

• False